Transnet, Nedbank reach R600m settlement in dispute dating back to 2015
State-owned freight utility Transnet confirms that it has reached a commercial settlement agreement with financial services provider Nedbank in a protracted legal dispute between the parties.
Nedbank has agreed to pay Transnet R600-million, without admission of liability, as a full and final settlement of the dispute.
While both parties stand by their respective statements in respect of the litigation process, the settlement allows them to continue working together to advance infrastructure investment and economic growth in the national interest.
The dispute relates to interest rate swap transactions made during the State capture era in 2015 and 2016.
According to the State’s forensic investigation agency the Special Investigating Unit, the transactions between Transnet and Nedbank involved swapping the interest rate on existing loans for numerous future interest rate payments based on financial derivatives.
Transnet alleges that Nedbank profited more than R2.7-billion from the transactions and sought to recover the amounts.
At the time, however, Nedbank argued that the sales margin it earned in respect of the swaps amounted to less than R43-million, with no dishonesty or corruption having been involved.
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